The demand that matters is the demand for season tickets. With the team playing well the last couple of years, the demand is SLIGHTLY greater than current capacity allows. But, if results drop off at all, that won't be a problem.
We could probably average 8000 for conference play if we had the capacity, but we might actually make less money because marginal season ticket buyers, who only purchase seats now to ensure that they have seats for big games, would instead opt for single game tickets.
If they want to convert the 3rd base berm to armchairs, that would probably only add about 500 seats, and not throw off the balance. But adding a substantial number of permanent seats would not be smart. I could see them doing some kind of outfield terrace or berm, too, as extra been seating would not flood the supply of the season ticket market. But Olsen doesn't need 7000 seats any more than I would need 3 cars--what looks to some as an asset would actually end up being a liability.